The season of cheer is upon us, but the celebrations have been noticeably subdued, as employees wrangle with financial stress over holiday spending. Concerns over expenses during this period have always been prevalent across the years, but 2025 has been rife with changes that have dulled the spirit of celebrations to a degree.
Some employees are looking at cutting back on their time off due to changes in company policy, while others are rethinking their finances to ensure they can save long-term. The concerns aren’t exclusively centered around money either, as workloads continue to grow towards the end of the year. Employers are not legally obligated to reduce an employee’s holiday stress or address any of their external worries, but those that do could rack up an impressive stack of goodwill points with their workers.
The holidays are meant to be a time of celebration, but financial stressors can weigh heavily on employees. What can employers do to help? (Image: Pexels)
The Holidays Bring Significant Financial Stress for Employees
Everyone enjoys a good break from work, whether they get a day away or a week to celebrate. But not all employees are equally able to make the most of the holiday season and unwind enough to participate in the season of giving. A survey from ResumeTemplates found that 61% of its respondents expect it to be harder to afford the holiday expenses this year.
Around 3 in 10 state that their struggles have to do with the loss of government benefits, while 2 in 3 full-time workers are expecting to take on additional work to cover expected costs. The survey of full-time workers also found that over one-third plan to spend less on their celebrations this year, whether on gifts, decor, or travel. This financial anxiety with regard to the holidays is also likely to push more workers towards side-jobs, which will only leave them more frustrated and burnt out.
How Can Employers Help Employees with Their Holiday Financial Stress?
Employers wondering how to address the financial stress employees are feeling over the holidays have their work cut out for them. Providing any form of monetary support before the holiday season can help employees manage their expenses better, but there are also other ways to aid them in managing their overall workload and stress to ensure they have more freedom to enjoy their holidays.
Reducing holiday-related financial stress for employees can look like:
- Providing year-end bonuses to all employees to manage their holiday stress
- Paying higher rates for workers planning to work through the holiday season
- Offering resources on financial literacy for employees throughout the year to help them manage their money
- Rewarding employees with travel benefits and other vouchers to aid with their expenses
- Supporting flexible work arrangements to help employees manage their time better
- Establishing employee assistance programs to allow employees to better care for their well-being
- Creating a detailed schedule for the remainder of the year to ensure employees are less burdened around the holidays
- Encouraging employees to use their PTO days without fear of repercussions at work
- Providing additional caregiver resources for employees to manage their responsibilities
- Recommitting to limit all contact with employees only during their 9-to-5 working hours
Stress Is Inevitable, but the Holidays Don’t Have to Be a Burden
The holiday stress is an inevitable part of the celebration cycle, with or without financial burdens, but working with an employer who understands this allows employees to express themselves more freely and do what they need to manage themselves better on the job. Any form of monetary reward during the holidays can aid employees, whether they choose to direct it towards their holiday spending or save it for a rainy day.
Such contributions and rewards cannot be organized abruptly before the holidays, and need to be embedded into the organization’s planning year-round to ensure they are prepared when the time comes. Not only do these generous rewards attract talent, but they also help retain them, making such planning an essential part of any business strategy.
If businesses aren’t in a position to be overly generous with their rewards to address the holiday financial stress, they can also choose to assist in other ways. This can look like reduced workplace stressors or more flexibility during the holidays, designed to allow employees to manage their situation better. A culture of empathy will also result in rewards, making the holiday season joyous for everyone.
Have other advice for employers hoping to aid employees with the financial stress around the holidays? Share your recommendations with us. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.